“In the event the Tinubu administration is able to deliver on key measures that unlock economic growth and foreign investment, there is more room for Nigerian stocks to re-rate,” Okunrinboye said. The broader Nigerian All Share Index, with a total market value of 32.4 trillion naira ($43 billion), is up 15% in the past 52 weeks. These banks are set for “impressive EPS expansion potential for investors,” based on revaluation profits, it said. The depreciation will benefit some Nigerian banks with large net foreign asset positions including First Bank, Guaranty Trust Bank, Zenith, UBA, and Access Banks, according to Lagos-based investment banking firm Chapel Hill. This plan is only available via Windows and includes premium support, Schedule C. Naira Plunges as Nigeria Lets Currency Break Through Control Quicken Home & Business: Manage home, business and rental finances for 119.88 per year. “From a valuation standpoint, Nigerian assets have been heavily discounted over the last eight years,” he said.įolashodun Shonubi, who was appointed acting central bank governor, has since allowed the naira to trade more freely, resulting in a rapid depreciation of the currency by nearly 40%, the second biggest loss in the world after the Zimbabwe dollar.
The strong out-performance in financial stocks suggests that equity markets are pricing an end to those policies, said Wale Okunrinboye, chief investment officer at Access Pensions Limited in Lagos.